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Fabletics is subsidiary of JustFab, renamed TechStyle Fashion Group in 2006. It is an online subscription service that sells women’s sportswear and accessories, founded by JustFab founders Don Ressler and Adam Goldenberg, and Kate Hudson in 2013.

In the summer of 2015, Fabletics launched its first men’s activewear line, FL2. FL2 was launched alongside the brother of Kate Hudson, Oliver Hudson. In the spring of 2016, Fabletics began selling dresses and swimsuits in addition to its “athleisure” products.

Since its founding, Fabletics has increased its revenue every year by 35 percent and has received an estimated worth of $250 million for its first three years. In 2015, the company opened its very first retail store, stocking its apparel based on their online trends. It is reported that Fabletics will open between 75 and 100 stores within the next five years.

It is a very difficult thing to do to take on the online fashion market when Amazon controls an astounding 20 percent of the market, but Fabletics is giving them a run for their money. They use the popularity of the ‘activewear’ movement and subscription model to sell their very popular products to customers. It’s a simply idea really, customers like brands that are ambitious. Combine that with the ease of the membership and it’s a winning combination.

The most successful brands in history have typically been defined by price and quality. In recent years, there has been a shift in these economics, making the normal combination no longer as successful. More things are important to consumers now like exclusive design, brand recognition, service, and customer experience.

Fabletic’s strategy is certainly paying off for the company. General Manager of the company, Gregg Throgmartin, believes that it is the design of the company that sets them apart. Fabletics is a more modern version of the valued brand that people have always been attracted to. Their business model affords them the opportunity to give their customers personalized service and trendy fashion at a much lower price than others. Fabletics knows what the consumers want and they give it to them.

With opening up stores and plans to keep doing so, Fabletics is obviously taking a different approach to this than anyone else. They use a “reverse showroom” method. Most places suffer in a retail setting because people browse the stores and then find a much cheaper version online when they get home. Fabletics works just the opposite. The customers’ browsing is now a positive thing. Most of the customers that enter the store are already members, while 25 percent of entering customers become members while they’re there.

The company doesn’t just choose random items to be placed on the shelves at their retail locations. Fabletics uses online local data about customers’ preferences so that they can stock their stores with items that will most likely appeal to the customers in that location. They use membership preferences, store heat-mapping data, and social media sentiment for decide which products to show.